The Bank Of England Clueless Thread

[Noallegiance]

Careful everyone. Warnings are being stepped up. 

[rollover]

 

Quote

 

Bank of England to balance Brexit and inflation as it seeks right note on rates

The Bank of England must decide how forcefully to talk about the prospect of a first interest rate rise in a decade on Thursday when it will weigh up the need to help Britain’s Brexit-bound economy against tackling a jump in inflation. The BoE’s policymakers are widely expected to leave rates at a record low 0.25 percent when they make their latest policy statement at 11:00 GMT. Reuters

 

Yes, the right talk will help.

[TheCountOfNowhere]

On 21/08/2017 at 5:10 PM, wotsthat said:

I know it's a boring old saying, but you just don't know who has been swimming without swimming costumes until the tide goes out.

But for f**k sake, there is close to £2 Trillion in personal debt out there, I am just aching to know how many horror stories that are out there,  and they are out there in huge numbers. It's just a shame we no longer have journalists willing to get off their backsides and stop sniffing around celebrities dustbins and warn the UK of whats coming. The reality is we will read about all this stuff when property prices drop 20% and the guy down the pub who was always smiling and looked the dogs boll*x with all his "wealth" was clinging on by his fingernails.

Good post.

Were plenty like this in 2007...saved in 2008 and gone "all in"  in 2012.

I viewed a house in 2008 and the owners told me they were desperate to sell !!!  3 months later an estate agent cried on the door step of another house because I wouldnt put an offer in.  When tomes get tough the weak seemingly beg and cry.

 

Both were bailed out with our money of course....next time I pray not.

Edited September 14, 2017 by TheCountOfNowhere

[Si1]

1 hour ago, rollover said:

 

Yes, the right talk will help.

So let me get this right, they're actively weighing up the degree to which they publicly weigh up something they might do in the future?

They get paid to do this?

[Errol]

Getting this thread ready for the big decision:

 

[Errol]

The Bank of England's Dilemma

https://www.bloomberg.com/view/articles/2017-11-01/the-bank-of-england-s-dilemma

[Errol]

INTEREST RATES RISE - TO 0.5%

Edited November 2, 2017 by Errol

[interestrateripoff]

2 minutes ago, Errol said:

INTEREST RATES RISE - TO 0.5%

Back to crisis rate level then!!!!

[houseface2000]

Repro time guys! the crash is on.

[GreenDevil]

16 minutes ago, interestrateripoff said:

Back to crisis rate level then!!!!

That'll be it then for another 10 years then.

[TheCountOfNowhere]

1 hour ago, GreenDevil said:

That'll be it then for another 10 years then.

weeks more like.

The US are going to raise again, guess what happens after....

[Timbuk3]

He gone an dun it Cleetus......

Boy did Carney look unhappy at the press conference. His unblemished record of never raising an interest rate is in tatters.

He actually looked physically ill, very Grey.  

[MattW]

YES!!! 

[zugzwang]

2 minutes ago, Timbuk3 said:

He gone an dun it Cleetus......

Boy did Carney look unhappy at the press conference. His unblemished record of never raising an interest rate is in tatters.

He actually looked physically ill, very Grey.  

He looked about as healthy as the UK economy does.

[TheCountOfNowhere]

On 11/09/2017 at 5:12 PM, sisyphal said:

FT "BoE to step up warnings against underestimating rate rises"  https://www.ft.com/content/9ac14968-9488-11e7-bdfa-eda243196c2c

Comments on there echo the sentiment on here. Nobody believes a word of it.

60% believed it.

It's pretty obvious what is happening and what is coming next.

BTLers with half a brain would be cashed out and sitting in barbados.

The one's left and the greatest of the greater fools ever.

[guest_northshore]

From inflation report press conference:

Lower 1.5% potential output growth rate (they think growth above 1.5% is inflationary).
Forecasts conditioned on additional 2 x 25bp market-implied rise in bank rate over next 3 years (forecasting at least that to get inflation back to 2%).
Only 1/5 people with a mortgage have never experienced rate rise. Of that half were post implementation of FPC affordability tests.
Brexit still a wildcard wrt behaviour of households, business, financial market participants. In either direction. Still in exceptional circumstances.
They regard fiscal policy as a headwind.
25bp hike expected to be passed on to savers (as 25bp cut was).
Limited spare capacity. Wage growth expected to pick up from 2018 subject productivity pick up, which is primarily what they've got wrong previously.
Don't want inflationary impact on real wages coming back again.
Don't know what's behind low productivity, but addressing potential big issue causes beyond their remit.

[Bsmf]

The coverage of this is infuriating. James ob saying how bad this this for poor people that need to borrow money to live and need to take on debt to get a house.

Even a 0.25% rise to the buy toilet people makes very little difference.

Someone I know "bought" somewhere in East London for 275k a few years ago. Let's it for £1200 and the io payments are tiny compared to the rent.

[TheCountOfNowhere]

16 minutes ago, guest_northshore said:

From inflation report press conference:

Lower 1.5% potential output growth rate (they think growth above 1.5% is inflationary).
Forecasts conditioned on additional 2 x 25bp market-implied rise in bank rate over next 3 years (forecasting at least that to get inflation back to 2%).
Only 1/5 people with a mortgage have never experienced rate rise. Of that half were post implementation of FPC affordability tests.
Brexit still a wildcard wrt behaviour of households, business, financial market participants. In either direction. Still in exceptional circumstances.
They regard fiscal policy as a headwind.
25bp hike expected to be passed on to savers (as 25bp cut was).
Limited spare capacity. Wage growth expected to pick up from 2018 subject productivity pick up, which is primarily what they've got wrong previously.
Don't want inflationary impact on real wages coming back again.
Don't know what's behind low productivity, but addressing potential big issue causes beyond their remit.

All I heard was some foreign bloke sayings..."blah blah blah big word blah blah blah honest I'm not making it up blah big word blah please believe us blah blah blah blah

 

To say these people are full of s**t 

Shysters in charge of shysters doing what shysters do.

All IMHO

[Errol]

Not quite sure why 'history' begins in 1970, but anyway ....

Edited November 2, 2017 by Errol

[TheCountOfNowhere]

1 hour ago, Timbuk3 said:

He gone an dun it Cleetus......

Boy did Carney look unhappy at the press conference. His unblemished record of never raising an interest rate is in tatters.

He actually looked physically ill, very Grey.  

It wasnt my imagination then ?

He looked like he had been crying.

His reputation is just fine, if he is lucky this wont blow up till he's been gone for 3-6 months, but it is blowing up.

[interestrateripoff]

http://www.dailymail.co.uk/news/article-5041263/Millions-homeowners-hit-mortgage-rate-rise-TODAY.html

‘We’ve NEVER seen a rate rise’: First-time buyers reveal fears as high street banks start hiking mortgage costs within MINUTES of the Bank of England raising interest rates for first time in a decade

Hello to reality.

[winkie]

7 hours ago, interestrateripoff said:

Back to crisis rate level then!!!!

....they don't know if they are coming or going......0.25% change now is a mega amount up and down (money is made from minuscule movements).....next it will be 0.10% movements.....a massive amount....when looking at such large amounts of indebtedness ......

[darkmarket]

15 hours ago, interestrateripoff said:

‘We’ve NEVER seen a rate rise’: First-time buyers reveal fears as high street banks start hiking mortgage costs within MINUTES of the Bank of England raising interest rates for first time in a decade

Hello to reality.

I actually found this a good example of the misrepresentation that becomes inevitable after all these false narratives. Since nobody wants to admit high house prices are a function of low interest rates and QE has been an expensive failure, both the Mail and the Guardian are left with asking if reductions in stimulus are an attack on the poor.

Carney himself touched on the issue when he said those on 18% APR would be proportionally less affected, but that's no use if your advertisers sell 18% APR credit cards.

Also his refrain of taking the foot off the accelerator seemed to me more apt for a command and control economy than a capitalist market economy, maybe that's just the central banker in 2017.

[Si1]

On 02/11/2017 at 1:42 PM, Timbuk3 said:

He gone an dun it Cleetus......

Boy did Carney look unhappy at the press conference. His unblemished record of never raising an interest rate is in tatters.

He actually looked physically ill, very Grey.  

Conflict between his political (raise rates as the proles are mobilising) and banking (mwoar money printing to justify annual bonuses) masters.

Presumably it's the latter that he cares about more in the long run.

[interestrateripoff]

http://www.dailymail.co.uk/news/article-5046719/Most-banks-wait-pass-higher-payouts.html

CARNEY BLAMES INTEREST RATE RISE ON BREXIT

Bank of England chief Mark Carney today warned uncertainty over Brexit is to blame for the UK's first interest rate rise in a decade.

He said the decision to quit the bloc is having a 'noticeable impact on the UK's economic outlook.'

He added: 'In many respects the decision today is straightforward: with inflation high, slack disappearing and the economy growing at rates above its speed limit, inflation is unlikely to return to the 2 per cent target without some increase in interest rates.

He's just taking the pi55 he cut rates due to Brexit now they are increasing due to Brexit!!!